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Repayment Mortgages UKLenders will also use credit reference agencies to obtain information about you Ask the seller or agent when the previous buyer pulled out and if recent, ask your conveyancer whether it is advisable to purchase the previous searches You are not looking for a guarantee of repayment at the end of the mortgage term The amount will vary from lender to lender and on the size of the mortgage The amount is usually measured in either pounds or months Are there any guarantees not held with the title deeds? i Insurers impose various get out clauses, so as with all insurance cover it is vital to check what is included (and excluded) in the cover the mortgage has to be held for a number of years before the lender breaks into profit The idea behind the pension mortgage option is to link the amount of this lump sum to the amount borrowed Advantages: With the built in life assurance and in most cases critical illness insurance the overall cost is usually lower More detailed reports are also available for a small fee If applicable, a redemption fee comes into effect when you repay/terminate the mortgage within the redemption term, as set out in your mortgage advance If the plan is not reaching its expected target, the borrower can increase payments into the policy or invest in another product to cover any anticipated shortfall In addition, borrowers will need a Contents Policy that provides cover for the contents, such as carpets, TV’s, furniture etc You should never assume that because a lender is prepared to agree a mortgage on the property that the purchase price is reasonable or there is nothing wrong with the property itself |